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Tax Law

Louisiana Legislature passes Marketplace Collection Bill

On May 28, 2020, the Louisiana Legislature passed S.B. 138, which, if signed by the Governor, will require marketplace facilitators to collect and remit state and local sales and use taxes if they exceed an economic nexus threshold of $100,000 in sales or 200 transactions in the state in the current or previous calendar year.

Beginning July 1, 2020, the bill directs marketplace facilitators to register with the Louisiana Sales and Use Tax Commission for Remote Sellers (Commission) within 30 days of meeting either threshold and begin collecting the tax within 60 days. Following the Senate’s concurrence to a House floor amendment, the bill will now be sent to Governor John Bel Edwards, who is expected to sign it into law. If enacted, only four states with a sales tax remain that have not enacted a marketplace collection law: Florida, Kansas, Mississippi, and Missouri.

Read our full legal alert here.